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Background

Electrify America is investing $800 million in California over 10 years with the purpose to increase the use of ZEVs. This investment is required by a settlement agreement between Volkswagen, the United States Environmental Protection Agency (US EPA), the United States Department of Justice, and the California Air Resources Board (CARB), after Volkswagen admitted to installing “defeat devices” that allowed its vehicles to cheat emissions tests and emit higher levels of emissions allowed by US EPA and CARB. Electrify America is a wholly owned subsidiary of Volkswagen whose mission is to develop and implement its ZEV investments.

This 10-year period is broken up into four investment cycles, with each cycle covering $200 million in investment over a 30-month period. For each investment cycle, Volkswagen is required to develop an investment plan explaining how it will invest the $200 million for that period. This plan is subject to approval by CARB, and CARB approved the first Investment Plan on July 27, 2017 and the second Investment Plan on December 13, 2018. Electrify America will continue to provide operational support and strategic guidance for the Green City Initiative in Sacramento throughout the length of their second investment cycle.

 

The first Investment Plan includes the following investments:

  • $45 million for community charging in six metropolitan areas across the state: Fresno, Los Angeles, San Diego, San Jose, San Francisco, and Sacramento.
  • $75 million will be invested to build a network of high-speed chargers along highways. Chargers are anticipated in the Sacramento region along Highway 99, I-5, and I-80 in the Sacramento region.
  • $44 million is dedicated to establishing the first Green City, both to showcase the benefits of ZEVs, and increase access to ZEVs.
  • $20 million is directed to public education initiatives using various media to highlight the benefits of ZEVs and overcome barriers to ZEV adoption.
  • The remaining $16 million will cover Electrify America’s operational costs.

 

The Green City Initiative is intended to concentrate investment in an area to promote transformational change. The first Plan proposes an investment of $11 million for a total of 75 chargers, and $33 million to develop a car sharing program as part of the Green City Initiative. The Investment Plan also identifies electric delivery fleets and e-taxis as potential future areas of investment.

As Electrify America developed its proposed ZEV Investment Plan in 2017, the City of Sacramento submitted a Green City proposal. The proposal outlined the City’s priorities for investment, including enhancing mobility options for low-income residents in disadvantaged communities, strengthening first-mile/last-mile connections to transit, workforce development and training, and establishing Sacramento as a hub for research and development in zero-emission technologies. The City’s Green City proposal presented Electrify America opportunities to leverage the City’s early investments and regional partnerships to promote the use of ZEVs. View the City’s Green City proposal.

 

Electrify America's initial investment in Sacramento is focused on the following activities:

  • Construction and operation of a network of Level 2 chargers, DC fast chargers, and high-power charging
  • Launch of a new EV car share program
  • Study opportunities for zero-emission delivery fleets and e-taxis
  • Expanding access to ZEV technologies access for disadvantaged and low-income communities

Submit comments or suggestions on these investments or Electrify America programs directly to Electrify America.

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